Q3 2025 Market Update

Organic growth driven by Vision Technology and Electrification

Financial developments Q3 2025

• Turnover of €419.4 million (+ 8.0% organically) 
• Adjusted EBITA of €38.7 million (- 6.4% organically)
• ROS of 9.2% (Q3 2024: 10.7%)
• Added value at 50.2% (Q3 2024: 51.5%)
• Orderbook at €1,028 million (June 30, 2025: €1,080 million)
• Outlook reiterated: turnover and adjusted EBITA for H2 2025 expected to be substantially higher than H1 2025 and to be above H2 2024

Financial developments first nine months 2025

• Turnover of €1,277.5 million (+ 3.5% organically) 
• Adjusted EBITA of €119.0 million (- 14.5% organically)
• ROS of 9.3% 

Alexander van der Lof, CEO of TKH: “In September we presented our new strategy, focused on the transition towards asset light Automation activities. This increased focus will enable us to drive further growth and capture the opportunities in the market. 
 
During the quarter under review, Smart Vision systems had a strong performance on the back of stronger market demand, with an organic growth of 11.4%, while turnover of Smart Manufacturing declined based on the lower order intake in previous quarters and a strong comparison base. We expect the order intake in Tire Building systems to improve over the coming quarters.
 
Within Electrification, we realised a 21.2% growth in turnover. This was driven by a strong increase in demand in the onshore energy segment and the contribution of the services activities in the offshore energy segment. The technical issues in the Eemshaven plant have been largely resolved. Output of offshore inter-array cables was limited in Q3 due to the focus on the release of new cable types and type approval tests, which were successfully completed. A new contract for the delivery of 140 km inter-array offshore cables for the Gennaker offshore windfarm was recently signed, and includes the engineering, manufacturing, testing, and delivery of the cables and corresponding accessories.
  
As we are entering our next strategic phase ‘Capitalize & Execute 2028’, we will continue our divestment program. The divestment of Dewetron, closed in October, brings the total turnover divested as of 2019 to €458 million. Over the coming period, we plan to divest a further €250 million in non-core turnover, including Digitalization. We will capitalize on our market leading positions and are fully committed towards the execution of our Capital Markets Day targets and actions.”

Developments by segment

AUTOMATION 
Automation consists of the subsegments Vision Technology and Automated Machinery that are closely related and focused on automating technology for a wide range of end markets. From full year 2025 onwards, TKH’s segment reporting will be in line with its new focus. 

Smart Vision systems
Smart Vision systems recorded a + 11.4% organic increase in turnover compared to Q3 2024, driven by improved performances in both Security and Machine Vision. Within Machine Vision, 3D Vision performed very well, benefiting from several well-performing end markets. Security Vision’s turnover increased compared to Q3 2024, primarily due to the delivery of some larger projects. 

Smart Manufacturing systems 
Smart Manufacturing systems recorded a - 8.9% organic decrease in turnover compared to Q3 2024. Turnover in Tire Building systems was lower due to the lower order intake in previous quarters, while Q3 2024 was particularly strong as a result of catch-up effects. Order intake in the quarter continued to be impacted by geopolitical circumstances. 

ELECTRIFICATION
Electrification consists of the subsegments Electrification and Digitalization. From full year 2025 onwards, TKH’s segment reporting will be in line with its new focus. 

Smart Connectivity systems 
Smart Connectivity systems reported a + 21.2% organic increase in turnover compared to Q3 2024. Offshore energy benefited from the ramp-up of the production of inter-array cables in Eemshaven, as well as increased turnover of accessories and services. During the quarter, production processes of inter-array cables in Eemshaven stabilized further. As planned, changeover to different cable types including successful further type approval tests for upcoming projects, impacted the utilization. The higher cost base, due to the Eemshaven plant being fully operational, impacted EBITA. Onshore energy recorded turnover growth during the quarter under review, driven by increased demand that is expected to continue into the coming year. Digitalization continued to be impacted by oversupply in the European fibre optic market, leading to pressure on volumes and pricing. 

2025 outlook

TKH expects the following developments per business segment:

AUTOMATION 

Smart Vision systems 
Smart Vision systems is expected to continue its strong performance. Turnover and adjusted EBITA in H2 2025 are expected to grow compared to H1 2025, on the back of the delivery of some larger secured orders within Machine Vision as well as Security Vision. 
 
Smart Manufacturing systems 
As anticipated, Smart Manufacturing systems’ H2 2025 turnover and adjusted EBITA are expected to be lower than in H1 2025, due to a lower orderbook. Although we have not seen an increase in our order intake in Tire Building systems in Q3, we expect an improvement in the coming quarters. 
 
ELECTRIFICATION

Smart Connectivity systems
Turnover and adjusted EBITA in H2 2025 are expected to grow substantially compared to H1 2025. A higher output level is projected in the Eemshaven factory, contingent on continued stable production processes. In addition, we expect further turnover increase in offshore accessories and services. Furthermore, in onshore energy, we anticipate a further increase in demand from the network companies that support higher utilization levels. Within Digitalization a lower cost level and higher utilization will also support an improved result.
 
Subject to ongoing market uncertainties and barring unforeseen circumstances, on balance TKH expects turnover and adjusted EBITA for H2 2025 to be substantially higher than H1 2025 and to be above H2 2024. 
 
Haaksbergen, November 11, 2025